Rajat Gupta, a former director at both Goldman Sachs (GS) and Procter & Gamble (PG) was convicted for passing confidential information to a hedge fund that profited off positions in the stocks.
Gupta is arguably the biggest fish to be caught in the government’s net in its expanding battle against insider trading.
He was convicted by a federal jury on two counts of securities fraud and one count of conspiracy — the fraud charges carry possible 20 year sentences, and the conspiracy charge carries a possible five year sentence.
Gupta , the former CEO of McKinsey Consulting, vowed to fight on. His attorney, Gary Naftalis, said:
“We believe the facts of this case demonstrate that Mr. Gupta is innocent of all these charges, and that he has always acted with honesty and integrity. This is only Round One. We will be moving to set aside the verdict and will if necessary appeal the conviction.”
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